Home / Business and Economy / India Inc Goes Green for Power Security
India Inc Goes Green for Power Security
11 Oct
Summary
- Companies are setting up captive renewable energy projects.
- Renewable power is cheaper than grid tariffs in many states.
- Major firms like UltraTech Cement and JSW Steel are investing heavily.
Indian companies are accelerating their adoption of captive green power, establishing renewable energy projects to ensure electricity supply and meet sustainability targets. This strategic move provides a hedge against grid dependence and volatile electricity prices, particularly benefiting power-intensive industries like steel, cement, and metals.
Sectors such as steel and cement are leading this transition. For example, UltraTech Cement has approximately 2 GW of captive renewable capacity, with JSW Steel and Ambuja Cements also possessing significant capacities. These investments underscore a growing trend where companies prioritize self-generated renewable power for their operations.
The economic rationale is compelling, with renewable power often priced between Rs 4.5-6 per unit, significantly lower than grid tariffs of Rs 7-8 per unit in several Indian states. This cost advantage, coupled with the need for uninterrupted power, makes captive renewables an attractive solution.
Beyond heavy industries, sectors like automotive and commercial real estate are also embracing captive green power. Maruti Suzuki and Tata Motors are expanding their use of renewable electricity through in-house solar generation and external procurement. Similarly, commercial real estate firms like Embassy REIT are operating solar parks to supply their business parks.
Industry experts anticipate this trend to grow, driven by competitive renewable tariffs, enhanced reliability, and converging sustainability goals. Captive renewable power is evolving into a crucial strategic tool for Indian businesses, supporting both operational efficiency and national decarbonisation ambitions.
